The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-01-29

viso that it be provided in the bill
that if that amount is not sufficient to
complete the works, the city shall be
authorized to issue an additional $780,.
600.
Mr.. Lowenstein stated tina. the com
mittee had considered the matter for
two years, and that they had conclud-
ed 81, 100000 was sufficient, and he
wa ted to know what was the use o.
issuing more. He, for one, was OPP
posed TO it.
A vote was then taken and stood:
Nays-Messr5. Hidden, Randle, Low
eusteiD, Greene, Helm, Overton and
NJ. Gavin. Yeas -Messrs. Mont
gomery, Lee, Patti rsoD, Kney, Ora
ham and Hampton 6.
Mr.. Moore said that il this board
were to continue to live that ba would
be willing that tLey should have all
the money they wanted, but that we
could not hops that such would be
the case.
The question then came up OF limit.
ing the amount to $1,000 600, to be
stated in the bonds and in the act.
A vote wac then taken and the vote
stood: Yeas-Messrs. Hidden, Green,
Lowenstein, Helm aud 0verton-5
Nays Messrs. KDey, Montgomery,
Graham, Raudle, Patterson, Lee,
Hampton and M. Gavin-8.
Mr.. Montgomery thought that H.
100000, with the interest guaranteed
bv the city, is worth as much as ST.
100000 without the interest guaran-
t ,ed.
The original motion, that the
amount shall not excsed $500 90
and that the amount issued shall be
settled by an ordinance Of the Coun-
Gil, vas then voted on and stood:
Yeas-Messrs. Kney, Montgomery,
Graham, Hadden, Randle, Patterson,
Lee, Hampton, Lowenstein, Helm and
M. Gaviu-11. Nsye-Messrs.C g. Greene
and John Overton,. jr.-2.
The question as 10 whether the city
should guarantee the Interest then
came up.
Mr.. Estes said that he was opposed
to the whole movement. He said it
was breaking moral faith with the
bon holders. He thought the city's
undertaking to build water works and
issuing bonds was a great public cal
amity. He said that in his idea the
80 cents tax was as obi e~ctionaole as
the issuance OF bonds; that the guar
antee of interest by the city was
equivalent to q fixed liability OF ovsr
So, 100000. He said it was in reality
indebtedness, and would swell the
public debt to something over &c, 000,-
600.
MI. Patterson said that he was op-
posed to the issuance of the $100, 600
worth of bonds. He said he was also
opposed tt the taxing clause in lieu cf
it, bus that he was in favor Of the city
guaranteeing theiinterest, as the bonds
could be placed at least one per cent.
less and would reduce our water rate.
Mr.. Turley said that hs was not a
b%ondholder but that he was a tixpay-
er. He said that he was opposed 10
the City's guaranteeing the interest on
the bonds. He said that it looked BID
in 80 short a time after compromising
with the b~ondnoldeIs to incur a new
obligation. He said the secret OF our
prosperity at present was that We paid
ss we went. If that rule were once
departed from there would be some
new scheme on foot continually; ina
it would be better for us to have nc
water works than to do this, and he
hoped there would be nc such guar
antee.
Mr.. Patterson said that the bonds
could only be floated at 6 per cent,
but that if they were guaranteed by
the city they could be lostsd at 4 per
cent, aud thus save $4,000. He said
that he regarded it in reality as no
liability, as it is secured by the water
works.
Judge Walker-It seems to me that
the lawyers ara doing a.! the talking.
Mr.. Ove1ton-They always.do.
Judge Walker-When they were
talking on your side you did not OBJ
jact to hear them talk. Let us sup.
pose that the bill has passed without
this guarantee and Mr.. Hadden goes
to New York to negotiate them, the
first question that is asked lie, what is
the security offered on these bonds for
the interest, as you only allow III the
works as guarantee for the principal ?
A capitalist would not touch them, as
the interest would come from the rev.
enue and we have the power to limit
the rates.
Mr.. Hill thought that the Council
were mourning a great obligation; that
it was opening the floodgste for a lot
of grasping creditors; that the Couu-
Gil would have to turn their backs on
the paving Of streets and the building
of a city ball.
Mr.. Hadden - The question is
whether the city guarantees the inter.
est. Gen. Greene said that the CITY
was now paying $4,000, but that that
sun was quite inadequate. A city of
this size should pay SIS, 600. II you
30 amend that clause that if the reve.
nue. is not sufficient the city would
make an addition TO the $4,000 to make
up the deficit.
Mr.. Hadden said that the Council
thought by the city's guaranteeing the
int act the bonds could be placed at
8 per cent. He said his idea was to
make a good piece Of paper and get a
low rate OF interest. He said he vas
going 10 stick by the proposition that
the plant alone be liable for the urin-
cipsl. He thought there should be
$500, 600 margin. With regard to the
city's guaranteeing the interest, it has
been shown that water works are
money making machines. The Coun.
Gil has to decide the water rate, and il
it does not pay the int rsst the deficit
must be made up by taxation.
Mr.. Overton said that the Taxing
District was created in order to get out
Of debt and stand on a cash basis. He
said that they would jump from a cash
to the tune Of $4,000. He
the water works could be built
for 81, 200, 900, but that he was willing
to try them on the ST, 800, 900 bs ,is.
He said that the committees report
had been published stating that the
water works could be built for 81, 200.
BOO. He said tina, this was the first
time that they had decided to Gre ate a
1oa'ing debt. 1t was a new depa,ture.
Gen. Co ton Greene moved The fol-
resolution in place of the tax.
clause: That section 8 be amended